Bitcoin raised to 19 thousand dollars after the US inflation report

The Bitcoin price has raised above $19 thousand USD on the day of trading on October 13. This happened after a sharp decline of the largest cryptocurrency as a result of the publication of the US inflation report, which significantly exceeded expectations.

Analysts tried to explain the logic of such a step, as the CPI report theoretically puts additional pressure on the Federal Reserve System to continue FRS tightening monetary policy – this usually has a negative impact on prices for risky assets such as stocks and cryptocurrencies.

US stock markets also backed to their positions, with traditional market investors suggesting that such "negative news" on the consumer price index may have already been priced in by traders.

By the time the article was published, Bitcoin (BTC) is up 0.2% to around $19,100 in the last 24 hours. Minutes after the inflation report at 8:30 AM ET (12:30 UTC), the price dropped to $18,198 – the lowest level since September 21 – but since then, the coin has mostly risen in value. The CoinDesk market index fell 1.1%.

“The CPI was close enough to expectations and thus it was estimated ahead of time,” concluded Riyad Carey, an analyst at Kaiko cryptocurrency research firm.

On Thursday, Ether (ETH) followed the same trajectory as BTC, falling in the early hours of US trading and then recovering before noon. By press time, ETH was down 0.9% to $1,280.

The trading epic began on Thursday when the Department of Labor released a CPI report showing an 8.2 % inflation rise in September, which was higher than economists' forecast of 8.1%.

Some market analysts chose a more impressive figure - a "core" CPI that excludes volatile food and energy prices. The index is up 6.6% year-over-year, to its highest level in four decades, a worrying sign that inflation is becoming more entrenched in the economy.

However, after the announcement above, starting around 11:05 am ET, stocks edged higher, with the S&P 500 1.3% up, the Nasdaq 0.8% up, and the Dow Jones 1.8% up, according to the Data Index of Wall Street Journal. The crypto markets have also revived.

“For now, Bitcoin buyers have to defend BTC at $18,500, trying to recover the level to $19,000, still in pursuit over the next few days,” said Fuad Fatullayev, co-founder and CEO of the WeWay Web3 ecosystem.

Despite the stock and crypto markets moving at noon, money market investors clearly took the report as unexpectedly buoyant: Federal funds futures trading on the CME reflects a 97% chance of a 75 basis point (0.75 percentage point) Federal Reserve rate hike from a follow-up meeting on monetary policy in November; rate hikes are three times the typical 25 basis point Fed gains in previous rate hike cycles

CME Group data even now shows that investors are only estimating a 3% chance of a 100 basis point rate hike - almost fabulous since the era of high inflation in the early 1980s.